The buying process or “cycle” is an interesting process to say the least. Why do customers buy? What goes through their mind before, during and after a purchase? Why do they choose what they do to buy? How do they process all the information about products and services available to them? Marketers, as well as sales and business development professionals alike all seek to answer these questions to yield success.
The buying cycle can viewed as having 5 phases, as indicated in the graphic below
For the purposes of this discussion, we will focus on the first phase – Problem Identification. (Have no fear, we will discuss the remaining phases in the next series of blogs.)
The buying cycle begins when either (1) the buyer notices a problem is starting to arise, or – which happens more often than not – (2) the buyer begins to see the effects of a problem without knowing what the problem is exactly. For example, a car dealer who wants to communicate frequently and maintain a relationship with customers fails to employ a reputable CRM. They notice that their customer retention is low and can rightlyfully attribute the problem their CRM system. On the other hand, you have a car dealership who uses the best CRM system available in the industry and has a consistent direct marketing schedule but they also notice customer retention is low. This dealership is left scratching their head as to why their customers aren’t returning to their store for service needs and/or to purchase another new car.
This begs the question: how can companies who have products and/or services that can solve a particular issue reach prospects who are in the “problem identification” stage of the buying process? One suggestion that we strongly recommend is to have stimulating and engaging conversations online to get yourself infront of prospects who are in the midst of the buying cycle.
We’re not simply recommending that you jump on the social media bandwagon and create profiles on all the major social networks (i.e., Twitter, Facebook, and LinkedIn). Since a “build it and they will come” mentality does not succeed in social media, we urge companies to get their hands dirty by really getting involved online after profiles are created. You should ask thought-provoking questions to prospects, answering questions posed by prospects online, offer up “best practices” and tips and provide concrete information that will get prospects thinking more about their problem and how it can be solved. This can be done on Facebook, Twitter, LinkedIn and YouTube…and each can drastically improve your business development processes by generating qualified sales leads.
Don’t believe us? According to DemandGen’s recent report “BtoB Buyer Transformation Survey,” social media activity on networks such as those named above are “having a growing impact with business purchases.” In fact, they reported:
Over 20% of buyers connected directly with potential solution providers on social networks
Almost 40% posted questions on social media sites with the intent of looking for suggestions and feedback
A majority of respondents said Twitter and LinkedIn influenced their purchasing decisions during the “Problem Identification” phase
The results of this survey clearly indicate that social media has a significant impact on the b2b buying cycle and provide evidence to our recommendation above. Though “Problem Identification” is still the first step in a sometimes long and frustrating buying cycle, remember that engaging with prospects early in the game and building rapport throughout will improve your chances for a sale in the end.
For more information and recommendations, please watch as Gateway partner Jason Bahnak elaborates in the video below:
Social Media sure has created a buzz for itself, ironically using social media to do so in many cases. There is tons of information about social media, yet I often get asked the simple questions like “What is social media” and “How or why should my company use it?” Alternatively, traditional B2B lead generation seems simple. You find some targets, pick up the phone and see who’s interested in what you offer. Does simple mean ineffective in today’s business environment? Not at all.
Let me try to kill 3 birds with one stone with an analogy about social media and explain (1) what it is, (2) why you should participate and (3) what to expect:
Pretend the internet does not exist. Pretend there is a large networking event coming up, such as a cocktail hour, and your company needs to make a BIG impression, as you need new business. You also know that there will be some great prospects attending this event, Presidents and Owners of large companies that can make your year if they do business with your company. These prospects will be talking about business, discussing needs, perhaps asking some questions of each other, requesting advice, and generally opening the door for your company to present its solutions.
Now imagine the best possible way your company could be represented in this environment to impress prospects and generate opportunities. Would you send your “closer” to this event, someone who doesn’t take “no” for an answer and will ask prospects the equivalent of “what can I do to get you into this car today?” Will you send your engineer, who has the most detailed knowledge of your process, but also has trouble talking with people? Neither.
Here’s how I imagine your best presence: You send someone who communicates well, but listens before they jump into a conversation. This person circles the room, first gaining an understanding of what prospects are discussing. When they encounter someone who has a general question relating to your industry, rather than try and “close” them, your representative politely answers their question, asking nothing in return, and hands them a business card in the event they have further questions. When your rep encounters a prospect with an immediate need, they eloquently describe how your company has helped other companies like theirs, and extends an invitation to present your solution at a later time. When your rep meets someone who doesn’t express either a need or a question, they communicate with that prospect on a personal level, trying to get to know them rather than appear to have an agenda. Best of all, if a prospect asks another event attendee if they know anyone who can help with a specific issue, that person points to your rep and says, “He’s provided us with some great advice and he knows what he’s talking about, I’d ask him.”
What I’ve described above is, in essence, social media marketing. Social media marketing is communicating with peers on a one-on-one level, but using the Internet to do so. It’s not “selling”, it’s “talking”.
You should participate because the conversations I described above are happening by the thousands, daily, by prospects who you want to attract. It’s worth mentioning that, like my analogy, these online conversations are not “sales conversations” by nature. They’re conversations involving the “asking for” and “providing of” advice…for free.
You should expect to generate interest in your company…not close business quickly. Much like marriage, dating comes first, and before that, friendships, and before that, communication.
B2B lead generation on the other hand is the more direct approach. In the example of the networking event, it’s as if you’re only jumping on the “immediate need” conversations. It is the quickest, most direct path to new opportunities. Where social media takes time, and is geared toward developing relationships, B2B lead generation (prospecting) tries to “cut to the chase” and convert leads into sales. It’s a focused effort on new business…finding the low-hanging fruit. B2B lead generation is a direct tactical approach to new business…it doesn’t beat around the bush.
When budgeting for either social media or B2B lead generation, consider your immediate needs. If they’re primarily to build relationships or interest, social media works great. If your need is to drive new business NOW, consider B2B prospecting. It’s more direct, and less “conversational”.
I hope this post has been helpful to those wondering where to allocate resources and what to make of this “social media revolution”. For any further questions about either topic, feel free to visit our blog at www.gatewaybizdev.com/blog.
A Dedicated Account Manager
In order to successfully connect with a prospect, you need one Account Manager dedicated to developing a business-to-business relationship with them.
Outsourcing your B2B lead generation to a firm that uses dedicated Account Managers will dramatically increase the effectiveness of the campaign by developing one-on-one relationships with prospects.
Using multiple sales representatives to contact the same prospect runs the risk of losing potential partnerships, as the prospect will get the impression they’re being passed around your organization with little concern about them personally.
Collaterals That Stand Out B2B decision makers aren’t always available by phone, and if they are they may not have time to speak with you.
It is imperative to consistently maintain contact with prospects. In cases where the decision maker is unavailable, you must have relevant collaterals on hand [such as videos, emails, and quality direct mail pieces] that can be delivered by a dedicated account manager through a variety of formats.
Prospects are receiving information from many of your competitors, which means your company’s collaterals must stand out to cut through the clutter. Standard html emails and voicemails can get buried amongst your competitor’s collaterals.
Effective Nurture Program Outsourcing to a firm with effective nurture programs is essential in advancing any area of B2B lead generation. It allows a continuous and structured flow of communication, but should vary based on a prospect’s disposition.
Historically, 85%-95% of outgoing phone calls will not result in a live connect, and those who are reached may not yet be in the market for new business-to-business relationships. No matter the situation, even if the prospect won’t be in the buying cycle for 6 months, the nurturing program must communicate to the prospect accordingly.
The Account Manager will be delivering messages to the prospect to maintain awareness over an extended period of time.Outsourcing to a firm who tailors each nurture program according to the prospect’s disposition ensures your company will be in the forefront of the prospect’s mind when they enter the buying cycle.
I’m a partner in a company that provides B2B lead generation and our program does in fact use the phone as a primary tool in developing potential business opportunities for our clients. As a business owner, with the nature of my business aside, I avoid solicitation calls like the plague. Why? Not because I don’t want to hear about an offer, or a potential solution, but because I’m busy making decisions about operating my business. I’m a decision maker, that’s what we do, and if you catch me with a call you better have a good intro-pitch to keep me listening. But catching me on the phone is a rarity and, generally speaking, other methods of contact are more effective. I know my situation is typical of most decision makers and, for that reason, if your prospecting program does not include a long term strategy to nurture leads, it will fail.
Consider this: if you “spray” (a lot of calls in a short period of time) a group of prospective targets, you will only reach a real decision maker 5-10% of the time. This isn’t due to the quality of the telemarketer but rather, connecting with a real Key Decision Maker (KDM) is a big challenge. They’re simply not taking calls and are too busy making important business decisions to focus on other things. So the question arises: How do you connect with the 90+% targets your telemarketing missed?
Message Delivery: A successful B2B lead generation program can use the phone, but should also deliver compelling messages while maintaining awareness over a long period of time. Since telemarketing is generally used as a short term campaign, effectiveness of the phone can quickly become insignificant if used as the only source of communication in approaching key decision makers. Once you have identified a prospect, you’ll often notice that they don’t usually respond to calls – so how do you successfully get your information in the KDM’s hands? To increase the chances of your message getting seen, not only should it stand out amongst the clutter of your competitors, but it must be expressed in a variety of formats. Consider a combination of various communication outlets such as email, web video, and direct mail to effectively express your message.
Timing: You could sit a prospect down in front of an IMAX movie about your service, but in today’s economy, if they’re not in a buying cycle you’re wasting your time and resources. KDMs today are thinking about two things: bottom line and new solutions for increasing company profitability. Because of this, when your target is interested in new opportunities, the company that is top-of-mind stands the best chance of receiving acknowledgment. To remain top-of-mind you must touch a prospect 8-12 times per year. A nurture program is essential to advancing any area of B2B lead generation as it allows for a continuous, and structured, flow of communication. Think of it this way; nurturing is like holding a prospects hand throughout the buying process, a constant reassurance of your company’s presence in the marketplace. However, for a successful nurture program, sending the same message 12 times a year should be avoided. Mix it up with different messages and formats. If you connect with a prospect via the phone, and it doesn’t result in an appointment, the following messages should reflect the information gathered during that conversation. Expressing an understanding of where your prospect is in the buying cycle, and adjusting communication accordingly, will keep your company in the forefront when the KDM is ready to purchase.
Social Media: Speaking of buying cycles, did you know the KDMs visit social websites MORE than corporate websites to find information about a solution or company? This occurs even more when KDMs are in the early stages of the buying cycle and are searching for information about their particular business needs. By blogging on a social site, or using a web video, you can successfully position your company as a needed informational resource. This allows you the opportunity to not only persuade your prospect to follow your input through a series of compelling messages, but nonchalantly creates an open door for relationship cultivation.
I hope this post gives you some food for thought when considering prospecting and nurturing to generate B2B leads. As usual, let us know if we can help, and please subscribe to our blog for future posts on ways to find new business for your business.
This blog was created to share our thoughts on B2B customer development in the hopes that this information will be useful for organizations working toward increasing new sales opportunities.
